IBM Q1 Profit Jumps 13%, Guidance Raised - InformationWeek
IoT
IoT
IT Leadership // IT Strategy
News
4/19/2011
05:10 PM
50%
50%
RELATED EVENTS
Ransomware: Latest Developments & How to Defend Against Them
Nov 01, 2017
Ransomware is one of the fastest growing types of malware, and new breeds that escalate quickly ar ...Read More>>

IBM Q1 Profit Jumps 13%, Guidance Raised

Strong gains in services, software and hardware sales help Big Blue handily beat Street estimates.

IBM on Tuesday reported solid gains across all its major product lines in the first quarter and raised its earnings outlook for the current year.

For the period ended March 30, IBM said total revenue was up 8% year-over-year, to $24.6 billion, while non-GAAP earnings per share rose 21%, to $2.41. Net income increased 13%, to $3 billion.

The results easily surpassed predictions by Wall Street analysts, who on average expected Big Blue to report EPS of $2.30 on revenue of $24.01 billion. Based on its strong start to the year, IBM raised full-year, non-GAAP EPS guidance to at least $13.15, from previous guidance of at least $13.00.

"We delivered a strong first quarter with revenue growth across hardware, software, and services and with more than 40 countries growing in double digits," said IBM chairman and CEO Sam Palmisano, in a statement.

IBM's results were impressive across the board.

Revenues from the company's Global Technology Services IT outsourcing unit rose 6% year-over-year, to $9.9 billion, while the Global Business Services BPO unit saw a 7% sales gain, to $4.7 billion. IBM also said its total services backlog increased by $8 billion, to $142 billion.

Total software revenues were up 6%, to $5.3 billion, driven by strong increases in what IBM calls its "key middleware" portfolio, which consists of products from the WebSphere, Information Management, Tivoli, Lotus, and Rational lines.

Hardware sales were also strong, up 19% to $4 billion. Leading the way was IBM's System z mainframe, revenue from which was up 41%. Sales of the company's Power servers, which run AIX and Linux, rose 19%, while its industry standard System x line saw a 13% gain. Storage sales were up 10%.

"We continued to see excellent momentum in our growth initiatives—Smarter Planet, cloud, business analytics, and growth markets—which bring together the full value of the IBM portfolio. We achieved broad-based margin improvement, while our cash flow and strong financial position enabled us to return value to our shareholders," Palmisano said.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll